“The year 2020 took place in an unprecedented context, but real estate crowdfunding continued to grow despite the difficulties that the real estate sector may have encountered during the crisis. This strong growth demonstrates the growing weight of real estate crowdfunding in the investment world. In this singular context, property developers and dealers have turned even more to this growth lever to quickly finance their operations, and savers have more than ever been there.
It is a product that has already proven its worth with informed investors, and which now also appeals to savers wishing to diversify their savings, starting from 1000 euros. With an average return of 9,3% / year and an average investment period of 21 months, this investment product, with solid fundamentals, is making its way into the French investment portfolio as evidenced by the billion euros collected. since 2016. The democratization of real estate crowdfunding will obviously continue and all stakeholders have a role to play in educating and providing good advice to less informed investors who are showing growing interest. It also responds to a current need linked to the crisis: to financially support French real estate VSEs / SMEs to help them carry out their projects. "
Jérémie Benmoussa, Chairman of the Management Board of Fundimmo
Record collection and reimbursement levels
With 505 million euros collected in 2020 against 373 in 2019, the market breaks a new record in the midst of the economic crisis, testifying to the strength of the model and the resilience of the real estate market.
The number of projects financed is increasing (+ 8%): 589 operations in 2020 against 544 in 2019, a moderate increase due to lockdowns which limited the number of projects. The overall increase in fundraising is therefore explained by larger funded projects than last year.
The amounts reimbursed are also growing strongly: 180 million euros in 2020 compared to 103 million euros in 2019, i.e. an increase of 75%, directly linked to the annual growth in collection in previous years, and which testifies to the solidity of the real estate crowdfunding model, the confinements not having significantly impacted the speed of repayments in 2020. The number of repaid projects is also increasing, from 220 in 2019 to 310 in 2020 (+ 41% ).
A product that seduces and is democratized
The average amount financed per project in 2020 was 857 euros, compared to 329 euros in 689. Up 150%, it reflects the capacity of platforms to attract large operators and large volumes of investors per project. . This increase is also naturally linked to the increase by the Pacte law of the collection ceiling to 2019 million euros (against 24 million before October 8), thus making it possible to finance larger real estate transactions. In 2,5, around 2019% of fundraising concerned projects between 2020 and 15 million euros, proof that the Pacte law had a real impact on the surge in the amounts collected. The placement period is slightly reduced: 5 months compared to 8 months in 21.
Based on data published by 28 platforms *, representing 100% of the total market fundraising, we see that investors are on average 177 per fundraising, with an average investment of 4711 euros (compared to 1581 euros in 2019, i.e. close to 198% increase).
The average rate of return is up slightly, to 9,3% per year (9,2% per year in 2019).
* out of the 32 platforms studied, 4 of them did not collect money and only made reimbursements
Ile-de-France is leading the way and the market remains oriented towards residential
In the continuity of the year 2019, Ile-de-France remains in the lead with an inflow of 225 million euros (+ 43% compared to last year), ahead of Auvergne-Rhône-Alpes (63 million euros, + 2%) and the Southern Region (59 million euros) which is gaining momentum (+ 49% compared to 2019) due to the growth in inflows for operations of luxury goods merchants, especially on the Côte d'Azur. These 3 regions alone account for nearly 70% of the total market collection in 2020. Also note the strong increases in collection in Normandy (+ 377%), Brittany (+ 282%), in the Hauts-de -France (+ 245%) or in the Pays de la Loire (+ 139%).
Among the 578 projects financed in 2020, 79,2% were residential oriented projects, far ahead of shops (6%), offices (4,8%), senior and student residences (4,7%), hotels (2,2%), development projects (1,8%), and logistics (1,3%). The drop in the share of shops and offices (less than 11% in 2020 against 13% in 2019) is explained by the impact of the crisis on the construction of new buildings of this type. We also note the rise of a new type of asset: senior and student residences, which were almost negligible in 2019 and which represent nearly 5% of projects in 2020, i.e. 23,6 million euros in fundraising. .
The share of transactions by goods dealers (purchase of goods which are then valued and then resold with a capital gain) is also on the rise: they represent 38,8% of collections in 2020, compared to 23% in 2019, i.e. increase of almost 69%. This diversification partly explains the rise of the residential sector.
In 2020, the “average project” financed by real estate crowdfunding was a residential operation of 43 units in Ile-de-France, representing a turnover of around 11 million euros.
A crucial business lever for real estate professionals
An innovative financing solution for real estate professionals, real estate crowdfunding allows them to save time to raise their own funds and to call on investors without bringing them into the capital of the project company, while maintaining their independence. This cash flow flexibility has attracted 321 operators since the creation of the market.
To date, the real estate crowdfunding market remains concentrated around 5 major platforms (including Fundimmo), which represent two thirds of the overall market in terms of fundraising, and which have each raised an average of 66,7 million euros in 2020. Then follow 5 medium-sized platforms which represent 23,1% of market share (each having raised 23,3 million euros on average), then 10 platforms which represent 9,5% of market share (with 4,8 , 7 million euros raised on average), and 1 platforms which represent 697% of market share (000 euros raised). The remaining platforms did not collect in 2020, only refunds.
Slight decrease in repayment delays, stability of the average default rate
The average late payment rate, which only takes into account overruns of the maximum contractual deadline since 2012, is down 1,91 points on delays of less than 6 months, and by 1,99 points on delays of more than 6 months. 2019 months compared to 4,4. They stand at 5,7% and XNUMX% respectively. In detail, only a few players are experiencing significant delays. This decrease can be explained mechanically by the amounts reimbursed which follow their course and the growth in collections.
The average default rate, calculated on the basis of projects that have suffered a loss of capital and / or a loss of interest since 2012, is estimated at 0,16%, down 0,41 points: no new event of default n 'was confirmed in 2020. In a process of transparency, the HelloCrowdfunding project aggregator updates the data on the progress of the various projects every month, thus making it possible to identify overdue projects.
Main indicators:
- 505 million euros collected (+ 35% compared to 2019), to finance 589 projects (+ 8%).
- 180 million euros reimbursed (+ 75% compared to 2019), representing 310 projects (+ 41%).
- An average amount per collection of 857 euros (+ 329% compared to 24).
- An average placement period of 21 months (compared to 21,3 months in 2019).
- An average annual return of 9,3%.
- The Ile-de-France region concentrates the highest collection, which reached 225 million euros in 2020. Auvergne-Rhône-Alpes (63,2 million euros) and the South Region (58,7 million euros) 'euros) complete the podium, as in 2019, with a rise in the South Region (+ 49%).
- An average late payment rate of less than 6 months of 4,4% (-1,91 points compared to 2019), and an average late payment rate greater than 6 months of 5,7% (-1,99 points). The default rate is 0,16% (-0,41 point).